New Records For U.S. Indices In Sight, Cautious Markets Rise On Trade Hope, Retail Sales Are Hot

Global markets rise on trade hopes but new records for the indices and a trade deal may be elusive.
Thomas Hughes

The U.S. Markets Are Up In Early Trading

The U.S. indices are slightly higher in cautious Friday morning trading. The NASDAQ Composite and S&P 500 are tied for the lead with gains near 0.30%. The Dow Jones Industrial Average is up about 0.15%. The move is driven by rising hopes a thaw in U.S./Chinese trade relations will hold. Today’s news includes word from President Trump that he might accept an interim deal if one were to present itself. Despite the gesture of goodwill issued on Thursday, some analysts speculate the current thaw is an indication the two sides are preparing for a much longer conflict.

Blue-chip bellwethers Boeing and Caterpillar are both moving higher in early trading. Shares of chipmakers are in the lead with an average gain of 1.0%. In economic news, U.S. retail sales rose 0.4% over the last month despite concern for weakness. Some analysts speculated strength in Amazon’s Prime Day may have sapped strength from August sales. The consensus was a gain of 0.20%. This is the last major data before next week’s FOMC meeting. The FOMC is expected to cut rates but once again the data does not support that idea.

EU Markets Cautiously Higher After Aggressive ECB Stimulus

The EU markets are mostly higher on Friday but the gains are not evenly spread. The German DAX is in the lead with an advance of 0.60% while the CAC trails at 0.37% and the FTSE lags at 0.05%. Yesterday’s easing from the ECB was seen as more-aggressive than expected and has led some to question the bank’s ability to follow through. The problem is the bank’s claim it could purchase government bonds for an indefinite period of time. Most agree the bank will run out of available bonds at some time in the not-too-distant future.

Financials are among today’s leader despite the ECB’s rate cut. The ECB prime rate is now -0.50% which makes it even harder for the financials to make money. Shares of bank stocks were particularly strong rising an average of 4.0%. Food & Beverage stocks fell nearly -2.0%. In economic news, the EU’s trade surplus with the U.S. rose to its highest level on record. The ongoing trade war with China has U.S. business more dependent than ever on their EU counterparts.

Asian Markets Rise On Trade Hopes

Asian markets moved broadly higher on rising trade hopes. The Nikkei led the advance with a gain of 1.05% with notable strength in Fast Retailing and Softbank. Fast Retailing rose 0.6% while Softbank gained more than 3.0%. The Hang Seng and Shanghai rose 0.98% and 0.75% while Korea gained 0.85% and Australia only 0.21%.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US